DOMESTIC V.

INTERNATIONAL ARBITRATION

Arbitration in the Philippines (Lazatin and Prodigalidad)

POINTS OF DISTINCTION DOMESTIC ARBITRATION INTERNATIONAL ARBITRATION

Arbitral agreement is treated like any other contract; Parties may constitute arbitration agreements, which by
RULES Binding effect submission to arbitration is valid, enforceable and definition are “those agreements of parties to submit to
irrevocable, except when there are valid grounds for arbitration all or certain disputes which have arisen or
Doctrine of forum revocation of contract which may arise between them in respect of a defined
non conveniens legal relationship, whether contractual or not”, and may
allows parties to The Philippine Arbitration Law enforces the binding either be “in the form of an arbitration clause in a
stipulate the law effect of an arbitration agreement when it mandates contract or in a separate agreement”
which governs courts to suspend actions filed by a party in disregard of
arbitration the arbitral agreement. The Philippine Arbitration Law Where an action is brought in a matter subject of an
proceedings. further mandates the court before which an action is arbitration agreement, the court must refer the parties to
brought in a matter, which is subject of an arbitration arbitration unless it finds that the agreement is “null and
The Model Law agreement to refer the parties to arbitration unless it is void, inoperative or incapable of being performed. Even
provides that parties proven that the arbitration agreement is null and void, where such action has been brought, arbitral
are free to stipulate inoperative, or incapable of being performed proceedings may nevertheless be commenced or
their choice of law continued, and an award may be made, while the issue
both as to rules is pending before the court.
applicable as to the
substance, as well
as with respect to Parties are free to stipulate which disputes and to what Competence competence doctrine (also under the
the rules of Scope/coverage issues may be referred to arbitration. However, the Model Law): arbitral tribunal may rule on its own
procedure. following cannot be referred to arbitration: jurisdiction, including any objections with respect to the
existence or validity of the arbitration agreement. If
a. labor disputes, which are covered by Presidential arbitral tribunal rules as a preliminary question that
Decree No. 442; it has jurisdiction, any party may request, within
thirty days after having received notice of that
b. disputes involving the civil status of persons; ruling, [a Philippine court] to decide the matter,
which decision shall be subject to no appeal.
c. disputes on the validity of marriage;
A court before which an action is brought in a matter
d. disputes concerning any ground for legal separation; which is the subject matter of an arbitration agreement
shall, if at least one party so request not later than the
e. disputes involving the jurisdiction of courts; pre-trial conference, or upon the request of both parties
thereafter, refer the parties to arbitration unless it finds
f. disputes on future legitime; that the arbitration agreement is null and void,
inoperative or incapable of being performed.
g. disputes involving criminal liability; and

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 h. those disputes, which by law cannot be compromised
After constituting the arbitral tribunal and during Arbitral tribunal is also empowered to order interim
Interim arbitration proceedings, a request for an interim measures of protection unless the parties agree
remedies measure of protection…may be made with the otherwise.
arbitral tribunal. Nevertheless, if the arbitral tribunal
has no power to act or is unable to act effectively, the If the arbitral tribunal has not been appointed or is
parties are not precluded from requesting the Court incapable of granting the interim relief, parties may
to grant an interim measure of protection. apply with the court for the appropriate relief.
Significantly, parties may also apply with a Philippine
court for assistance in enforcing an interim measure The type of relief that may be applied for and the
granted by the arbitral tribunal. manner by which the parties may apply for the relief is
the same as that provided by the ADR Act for domestic
Purpose of interim remedies: arbitration.

a. to prevent irreparable loss or injury, e.g., attachment;

b. to require security for the performance of an

obligation;

c. to require the production and preservation of any

evidence; and

d. to compel any other act or omission

Within one month from the time an arbitral award is Within thirty days from receipt of the arbitral award, the
Finality of award rendered, any party may apply with the Philippine parties may request the arbitral tribunal to correct
court having jurisdiction over the same for an order typographical error or errors in computation (Model Law
confirming that award. Art. 33(1)(a)), and/or to make an additional award as to
claims presented in the arbitral proceedings but omitted
Upon the granting of an order confirming, modifying or from the award (Art. 33(3)). Within the same period and
correcting an award, judgment may be entered if the parties agree, a party may also request the arbitral
therewith in the court wherein said application was tribunal to interpret a specific point or part in the arbitral
filed. award.

Once the order confirming the arbitral award together Within three months from receipt of the arbitral award or
with the award itself is entered in the book of entries amended arbitral award, a party may petition the court
of judgment, the arbitral award becomes final and to set aside the award on grounds, which, among
executory. others, include incapacity of a party to the arbitration
agreement, invalidity of the arbitration agreement, no
Notes: notice given of the appointment of an arbitrator or of the
arbitral proceedings, dispute beyond the scope of the
terms of submission to arbitration, composition of the
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 tribunal or the arbitral procedure not in accordance with
-CIAC arbitral award is executory need not be the agreement of the parties, public policy.
confirmed by a Philippine court

-Parties may agree that arbitral award shall be final, but

not deter courts from reviewing an arbitral award
ENFORCEMENT OF
ARBITRATION Petition to No need to file petition to court to compel arbitration. A party to a domestic arbitration need only apply to the
AGREEMENT compel Appointing Authority, or in its default, the court, to appoint an arbitrator or arbitrators. When tribunal has been
arbitration constituted, party to any arbitration agreement may lodge its plea to compel arbitration with the arbitral tribunal.
2 remedies when one
party refuses to Implied waiver of objection: A party who knows that any provision of the [Model Law] from which the parties may
comply with terms of derogate or any requirement under the arbitration agreement has not been complied with and yet proceeds with the
arbitration agreement arbitration without stating his objection to such non-compliance without under delay or, if a time-limit provided
(refuses to enter into therefore, within such period of time, shall be deemed to have waived his right to object.
arbitration):

a. Compel other Failure of a party to participate in a domestic arbitration Unless otherwise agreed by the parties, if, without
party to comply Ex-parte proceeding will not give rise to a dismissal or showing sufficient cause:
thru an action proceedings suspension of that proceeding. Hearings conducted by (a) the claimant fails to communicate his statement of
for specific the arbitral tribunal “may proceed in the absence of any claim in accordance with Article 23(1), the arbitral
performance; or party who, after due notice, fails to be present at such tribunal shall terminate the proceedings;
b. Proceed ex hearing or fails to obtain the adjournment thereof.”
parte with Nevertheless, “an award shall not be made solely on the (b) the respondent fails to communicate his statement of
default of a party” and the party that fails to appear may defense in accordance with Article 23(1), the arbitral
arbitration
still be given an opportunity to submit evidence if it is tribunal shall continue the proceedings without treating
required by the arbitral tribunal for making the award. such failure in itself as an admission of the claimant’s
Nevertheless, parties allegations;
may later mutually
decide to refer (c) any party fails to appear at hearing or to produce
dispute to court documentary evidence, the arbitral tribunal may
without arbitration. continue the proceedings and make the award on the
Moreover, the evidence before it.
inaction of a party
who seeks to enforce If any of the parties to the arbitration proceedings brings
arbitration agreement an action before the court on a matter subject of the
may also constitute a arbitration agreement, the arbitral proceedings may
waiver on his part to proceed and an award may be issued even if the matter
arbitrate. brought before the court is still pending.

ESTABLISHMENT
OF ARBITRAL Number of General Rule: according to arbitral agreement General Rule: according to arbitral agreement
TRIBUNAL Arbitrators

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 Exception: ‘any clause giving one of the parties the Exception: ‘any clause giving one of the parties the
power to choose more arbitrators than the other is power to choose more arbitrators than the other is
void and of no effect.” (Art. 2045, NCC ). void and of no effect.” (Art. 2045, NCC ).

In the absence of stipulation, number of arbitrators In the absence of stipulation, number of arbitrators
shall be three (Model Law, Art. 10, in rel to RA 9285, shall be three. (Model Law, Art. 10, in rel to RA 9285,
Sec. 33). Sec. 33)

In the event that the parties seek the aid of the

Appointing Authority or court in appointing an arbitrator
or arbitrators because of the parties’ refusal or failure to
make such an appointment, “the [Appointing Authority
or] court shall in its discretion appoint one or three
arbitrators, according to the importance of the
controversy” if “the agreement is silent as to the number
of arbitrators.”

Note on Appointing Authority

Sec. 26, RA 9285 defines “Appointing Authority” as “the

person or institution named in the agreement as the
appointing authority; or the regular arbitration
institution under whose rules the arbitration is
agreed to be conducted.”

- In the event that the parties fail to name an

appointing authority, it is understood that the
Appointing Authority will be the President of
the Integrated Bar of the Philippines
- If he fails to act, the Regional Trial Court.

The Appointing Authority’s functions are essentially to

aid the parties in the appointment, challenge, and
termination of the mandate, of an arbitrator or
arbitrators where the parties are unable to agree

Time Limits General Rule: parties are free to stipulate period to General Rule: parties are free to stipulate period to
constitute arbitral tribunal constitute arbitral tribunal

Exceptions: Exceptions:

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 a. When either of the parties fails or refuses to a. When either of the parties fails or refuses to
name his arbitrator within 30 days after name his arbitrator within 30 days after
receipt of demand of arbitration. (Sec. 8, RA receipt of demand of arbitration. (Sec. 8, RA
9285) 9285)
b. If the two arbitrators fail to agree on the third b. If the two arbitrators fail to agree on the third
arbitrator within the same period of time, the arbitrator within the same period of time, the
aggrieved party may request the Appointing aggrieved party may request the Appointing
Authority, or the court as the case may be to Authority, or the court as the case may be to
appoint the arbitrator. (Model Law, Article 11 appoint the arbitrator. (Model Law, Article 11
(3) in relation to Republic Act No. 9285, Section (3) in relation to Republic Act No. 9285, Section
33) 33)

Appointment by Appointing Authority/Court Appointment by Appointing Authority/Court

The appointment itself has no time limit, but must be The appointment itself has no time limit, but must be
made within a reasonable period. made within a reasonable period.

Acceptance/Decline of the Arbitrator Acceptance/Decline of the Arbitrator

Arbitrator appointed by Appointing Authority/court must NO SPECIFIED PERIOD FOR
accept/decline appointment within 7 days from being ACCEPTANCE/DECLINE, BUT MUST BE MADE
notified thereof. WITHIN A REASONABLE PERIOD. (only difference to
domestic with respect to time limits)

Manner of General Rule: in accordance with the Submission Agreement/Arbitration Clause by the nomination of specific
Appointment person(s), nomination of ascertainable person(s), stipulation of a specific method, or reference to institutional
arbitration rules or arbitration laws.

Exception: parties may refer appointment to Appointing Authority or court when:

a. the parties agree on the manner of appointment of an arbitrator but one of them fails to act in accordance
with the procedure or there is a failure to abide by the procedure; or
b. there is absence of an agreement on the manner of appointment of an arbitrator

Qualifications Qualifications: No specific qualifications provided by Model Law.

Parties may stipulate qualifications.
An arbitrator a. be of legal age;
cannot act as b. have full enjoyment of his civil rights; However, Model Law emphasizes the importance of an
champion or c. know how to read and write; arbitrator’s impartiality and independence.
advocate for
either of the
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parties to d. not be related by blood or by marriage within
arbitration. sixth degree to either party; When a person is approached in connection with his
Neither can he e. have or have had no financial, fiduciary, or other possible appointment as an arbitrator, he shall disclose
act as mediator interest in the controversy or cause to be any circumstance likely to give rise to justifiable
nor be present in decided or in result of the proceeding; and doubts as to his impartiality or independence.
the negotiations f. have no personal basis which might prejudice
for the settlement An arbitrator, from the time of his appointment and
the right of any party to a fair and impartial
of the dispute. throughout the arbitral proceedings, shall without
award.
delay disclose any such circumstances to the parties
unless they have already been informed of them by him.
Qualifications not exclusive; parties may stipulate (applicable also to domestic arbitration)
additional qualifications.

Qualifications above-mentioned are, however, waivable.

Upon learning that the arbitrator does not possess the
required qualifications, the parties may decide to
retain the arbitrator or challenge his appointment.
(Model Law)

Challenges Grounds for Challenge Grounds for Challenge

Old rule: only lack of qualification of arbitrator may be An arbitrator may challenged not only for lack of the
challenged (Sec. 10, RA 876) qualifications provided by Section 10 of Republic Act
No. 876, but also if there are justifiable doubts as to
New Rule: arbitrator may challenged not only for lack of his impartiality and independence, or if he does not
the qualifications provided by Section 10 of Republic Act possess qualifications agreed to by the parties.
No. 876, but also if there are justifiable doubts as to
his impartiality and independence, or if he does not - However, grounds for challenge are limited to
possess qualifications agreed to by the parties. those which challenging party becomes aware
after the appointment has been made
- However, grounds for challenge are limited to
those which challenging party becomes aware Procedure for Challenge (Art. 13, Model Law)
after the appointment has been made
1. Parties are free to agree on procedure for
Procedure for Challenge challenge.
2. If there is no agreement on the challenge
1. Parties are free to agree on procedure for procedure, “a party who intends to challenge an
challenge. arbitrator shall, within fifteen days after
2. If there is no agreement on the challenge becoming aware of the constitution of the
procedure, “a party who intends to challenge an arbitral tribunal [or the circumstances that
arbitrator shall, within fifteen days after would give rise to a challenge], send a
becoming aware of the constitution of the written statement of the reasons for the
arbitral tribunal [or the circumstances that challenge to the arbitral tribunal.”
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 would give rise to a challenge], send a 3. The arbitral tribunal shall decide the
written statement of the reasons for the challenge.
challenge to the arbitral tribunal.” 4. If the challenge is rejected, any of the parties
3. The arbitral tribunal shall decide the may petition the Appointing Authority, or in its
challenge. default, the court, to decide on the
4. If the challenge is rejected, any of the parties challenge. That petition should be made
may petition the Appointing Authority, or in its within thirty days from receipt of the notice
default, the court, to decide on the of rejection. Any decision of the Appointing
challenge. That petition should be made Authority, or court, as the case may be, cannot
within thirty days from receipt of the notice be appealed.
of rejection. Any decision of the Appointing
Authority, or court, as the case may be, cannot *While the challenge is pending with the
be appealed. Appointing Authority or court, “the arbitral
tribunal, including the challenged arbitrator, may
*Old rule is that arbitration proceedings are continue the arbitral proceedings and make and
suspended while court decides on the challenge. award
The new rule is that, while the challenge is
pending with the Appointing Authority or court,
“the arbitral tribunal, including the challenged
arbitrator, may continue the arbitral proceedings
and make and award. (Republic Act No. 9285 in
relation to Article 13 (3) of the Model Law).

Fees Section 21 of Republic Act No. 876 states that the fees No fixed fee under Model Law, but in practice, parties
of the arbitrators shall be fifty pesos, or approximately and the arbitrator/s are free to agree on the fees.
U.S. $ 1.00, per day unless the parties agree otherwise
in writing prior to the arbitration. As such fee is quite
unreasonable for the arbitrator, the proposed Rules and
Regulation Implementing Republic Act No. 9285 include
guidelines in fixing the arbitrators fees and other
expenses.
1. Submission for agreement
PROCEDURE OF Basic Pleadings - Proper when no arbitration agreement existed at 1. Submission for agreement
ARBITRATION the time that the dispute arose - Proper when no arbitration agreement existed at
Filing of a - Through a submission agreement, parties a) the time that the dispute arose
submission agree to submit to arbitration an already existing - Through a submission agreement, parties a)
agreement, as dispute in case there is no arbitration agree to submit to arbitration an already existing
well as the agreement; or b) agree to have a matter beyond dispute in case there is no arbitration
making of an agreement; or b) agree to have a matter beyond
the scope of an arbitration agreement in case
arbitration award
they find such agreement restrictive. the scope of an arbitration agreement in case
constitutes
submission of - Filed with the clerk of court of RTC of the place they find such agreement restrictive.
the parties to having jurisdiction over place where:
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the jurisdiction a. One of the parties resides; - Filed with the clerk of court of RTC of the place
of the RTC to b. One of the parties is doing business; or having jurisdiction over place where:
enforce the c. Arbitration took place (Sec. 22, RA 876) d. One of the parties resides;
agreement (Sec. e. One of the parties is doing business; or
4, 2nd par., RA 2. Demand/request for arbitration f. Arbitration took place (Sec. 22, RA 876)
876) - Presupposes that an arbitration agreement
existed at the time dispute arose; the right of a 2. Demand/request for arbitration
party to demand arbitration arises from the a - Presupposes that an arbitration agreement
arbitration agreement itself existed at the time dispute arose; the right of a
- Treated as complaint/petition, wherein party to demand arbitration arises from the a
ultimate facts, causes of action and relief arbitration agreement itself
demanded are already asserted. Hence, it is - NOT A STATMENT OF CLAIMS. It only sets
statement of claim of claimant. forth the basis of claimant’s right to arbitrate, as
- Served upon other party well as the outline of issues to be arbitrated.
Statement of claims made during arbitral
proceedings.
- Served upon other party

1. Submission Agreement
Form of basic - In writing, signed by party against whom 1. Submission agreement
pleadings arbitration is sought, or by his lawful agent - In writing; considering that an arbitration
agreement is a pre-causal agreement, must
2. Demand/request for arbitration follow the formalities of an arbitration
- Writing, served upon other party either agreement.
personally or by registered mail - Considered in writing if “contained in a
document signed by the parties or in an
exchange of letters, telex, telegrams or other
means of telecommunications which provide a
record of the agreement.” (Art. 7(1), Model Law)

2. Demand/request for arbitration

- In writing as proof that it exists and later, that it
was sent to the other party

1. Submission Agreement 1. Submission Agreement

Basic contents - Minimum required content: statement that the - Minimum required content: statement that the
of pleadings parties agree to submit an existing dispute to parties agree to submit an existing dispute to
arbitration arbitration
- Optional: other matter in the submission such as - Optional: other matter in the submission such as
the procedure for appointing an arbitrator, the the procedure for appointing an arbitrator, the
governing arbitration law, the language of the governing arbitration law, the language of the

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 arbitration, the arbitration procedure, and such arbitration, the arbitration procedure, and such
other matters as the parties require to give other matters as the parties require to give
effect to arbitration. effect to arbitration.

2. Demand/request for arbitration 2. Demand/request for arbitration

- Contents: - basis of claimant’s right to arbitrate, as well as
a. nature of the controversy; the outline of issues to be arbitrated. (this is
b. amount involved, if any; necessary because the demand to arbitrate
c. relief sought, together with determines when the arbitral proceedings
d. a true copy of the contract providing for commence).
arbitration
e. In the event that the contract between the
parties provides for the appointment of a
single arbitrator, the demand shall set
forth a specific time within which the parties
shall agree upon such arbitrator.
f. If the contract between the parties provides
for the appointment of three arbitrators,
one to be selected by each party, the
demand shall name the arbitrator appointed
by the party making the demand; and shall
require that the party upon whom the
demand is made shall within fifteen days
after receipt thereof advise in writing the
party making such demand of the name of
the person appointed by the second party;
such notice shall require that the two
arbitrators so appointed must agree upon
the third arbitrator within ten days from the
date of such notice.
- Optional: Prefatory Statement/Introduction to put
in the advocate's perspective or slant of the
facts and issues, a Reservation of the right to
raise other claims/issues ascertained and
identified in the course of the arbitration, and
occasionally a compilation of the party's
documentary evidence.

1. Answer to demand/request for arbitration 1. Answer to demand/request for arbitration

Answer and - Statement of defense of a party upon whom - Statement of defense of a party upon whom
counterclaim demand to arbitrate is served demand to arbitrate is served

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 - Not mandatory - Period depends on agreement of parties, or
NOTE: - Period depends on agreement of parties; in the determination by the Arbitral Tribunal.
Applicable only to absence of agreement, no period provided for - In case of failure to answer within period agreed
demand/request by law, but must be within reasonable time upon/determined, Arbitral Tribunal shall
for arbitration, *remember: period is only for appointment of continue the proceedings without treating such
since submission arbitrator by party upon whom demand is failure itself as an admission of the claimant’s
agreement is served. allegation
made by mutual
- No legal sanction for failure to answer, but it - Either party may amend or supplement his claim
consent of parties
may have practical consequences. The or defense during the course of the arbitral
arbitrator(s) will not only have a one-sided view proceedings unless there is an agreement to the
of the dispute, i.e., the claimant's side, worse, contrary
the arbitrator(s) may likely misinterpret and draw
negative conclusions from 2. Counterclaim to demand/request for
defendant/respondent's failure/ neglect to arbitration
answer. If only for practical considerations, it is - Same as domestic
certainly worthwhile to file an answer.
- The Answer becomes essential when the
defendant/respondent has affirmative defenses
which he desires to prove.

2. Counterclaim to demand/request for

arbitration
- cross-action set by the defendant, or respondent
in arbitration. The defendant alleges that he has
a valid claim and is entitled to some relief or a
remedy against the plaintiff in respect of any
matter, and may, instead of bringing a separate
action, make a counterclaim, and add it to his
defense.
- governed by the same rules of pleading as a
statement of claim.

Reply and its Reply is an answer to a counterclaim. Not mandatory nor essential
necessity

THE AWARD Time to render General Rule: Period stipulated/agreed upon General Rule: Period stipulated/agreed upon

In the absence thereof: Arbitral tribunal must render a In the absence thereof: Arbitral tribunal must render an
written award within 30 days after closing of the hearing award within a reasonable period
(Sec. 30, RA 876)

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 Such period may be extended by mutual consent of the
parties.

Form and The award in a domestic arbitration must be in writing and signed by the arbitrator or arbitrators. “In arbitral
Content proceedings with more than one arbitrator, the signature of the majority of all members of the arbitral
tribunal shall suffice, provided that the reason for any omitted signature is stated.” Unless the parties agree
otherwise, the award should state the reasons upon which it is based. The award should also state the date and
place of arbitration.

Grounds or Sec. 24, RA 876: Art. 34, Model Law:

Procedure to
Quash/Vacate a. Corruption, fraud or other means in procuring 1. When applied for by a party, he must furnish
the award; proof that:
b. Evident partiality or corruption in the arbitrators a. party to the arbitration agreement was
or any of them; under some incapacity; or the said
c. Misconduct of the arbitrators in refusing to agreement is not valid under the law to
postpone the hearing upon sufficient cause which the parties have subjected it, or,
shown or misconduct in refusing to hear failing any indication thereon, under the law
pertinent and material evidence; of the Philippines; or
d. Disqualification of one or more arbitrators and b. the party making the application was not
said arbitrator(s) refrained from disclosing such given proper notice of the appointment of an
disqualification; arbitrator or of the arbitral proceedings or
e. Any other misbehavior of the arbitrators by was otherwise unable to present his case;
which the right of any of the parties have been or
materially prejudice; or c. the award deals with a dispute not
f. The arbitrators exceeded their powers or contemplated by or not falling within the
imperfectly executed them such that a mutual, terms of the submission to arbitration, or
final and definite award was not made contains decisions on matters beyond the
scope of the submission to arbitration,
*For rules of procedure to quash/vacate arbitral award, provided that, if the decisions on matters
see Rule 11, Amended Rules of Court on ADR submitted to arbitration can be separated
from those not so submitted, only the part of
the award which contains decisions on
matters not submitted to arbitration may be
set aside; or
d. the composition of the Arbitral Tribunal or
the arbitral procedure was not in
accordance with the agreement of the
parties, unless such agreement was in
conflict with a provision of the ADR Act from

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 which the parties cannot derogate, or failing
such agreement, was not in accordance
with the ADR Act;
*note: limitation of forum non conveniens is
that stipulation as to procedure of arbitration
must not be in conflict with the provisions of
ADR Act

2. Finding of the RTC that:

a. the subject matter of the dispute is not
capable of settlement by arbitration under
the law of the Philippines; or
b. the award is in conflict with the public policy
of the Philippines.

Confirmation RA 876: Art. 35, Model Law:

and
Enforcement - any party to the controversy may, within one (1) An arbitral award, irrespective of the country in which
month after the award is made, file with the it was made, shall be recognized as binding and, upon
Regional Trial Court having jurisdiction a motion application in writing to the competent court, shall be
to have the award confirmed with notice to the enforced subject to the provisions of this article and of
adverse party or his attorney. Unless the award Article 36.
is vacated, modified or corrected, the court must
grant the motion for confirmation of award (Sec. (2) The party relying on an award or applying for its
enforcement shall supply the duly authenticated original
23)
award or a duly certified copy thereof, and the original
- Upon granting of an order confirming an award, arbitration agreement referred to in Article 7 or a duly
judgment may be entered in conformity certified copy thereof. If the award or agreement is not
therewith by the Court. The judgment so entered made in an official language of this State, the party shall
which will be docketed as if rendered in a supply a duly certified translation thereof into such
special civil action, shall have the same force language.
and effect and be subject to all the provisions
relating to a judgment in an action and may be NOTE: With respect to foreign arbitral awards, Republic
enforced as if it had been rendered in the court Act No. 9285 distinguishes between awards made under
in which it has been entered. the United Nations Convention on the Recognition and
Enforcement of Foreign Arbitral Awards (“New York
* Confirmation of the award is essential before the same Convention”, which was ratified by the Philippine Senate
under Senate Resolution No. 71) and those not thus
can be judicially enforced. Hence, a successful party
covered by the New York Convention:
cannot secure a writ of execution to enforce an
arbitral award in his favor without said award first
confirmed by the courts of law. (But remember that a. As to arbitral awards covered by the New York
Convention, the petitioner shall establish that the
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 an arbitral award is enforceable even without judicial country in which the foreign arbitration award was made
confirmation. The only difference is, with court is a party to the New York Convention.
confirmation, the winning party may avail of judicial
remedies to enforce the award.) b. As to arbitral awards not covered by the New York
Convention, the recognition and enforcement of these
An exception is an award rendered under the awards shall be done in accordance with the procedural
Construction Industry Arbitration Law, which authorizes rules to be promulgated by the Supreme Court. The
the issuance of a writ of execution to enforce the arbitral Court may, on grounds of comity and reciprocity,
award upon the finality thereof. recognize and enforce a non-convention award as a
Convention award.
*Arbitration has the effect of res judicata. Article 2037
of the Civil Code expressly provides that a compromise NOTE:If the Regional Trial Court has recognized the
has the effect or authority or res judicata ... and arbitral award but an application for (rejection and/or)
consequently can no longer (be appealed)”. Note that suspension of enforcement of that award is
provisions on compromise is also applicable to subsequently made, the Regional Trial Court may, if it
arbitration. considers the application to be proper, vacate or
suspend the decision to enforce that award and may
This is of course not to mention Sections 27 and 28 of also, on the application of the party claiming recognition
R.A. No. 876 which make the confirmed award subject or enforcement of that award, order the other party
to immediate execution. seeking rejection or suspension to provide appropriate
security. (Sec. 42 and 45, ADR Act)

NOTE: A foreign arbitral award, when confirmed by

a Court of a foreign country, shall be recognized and
enforced as a foreign arbitral award and not as a
judgment of a foreign Court. When a foreign arbitral
award is recognized by the Regional Trial Court, it shall
be enforced in the same manner as final and
executory decisions of the courts of law of the
Philippines

APPEAL

- Resolutions of arbitrators/arbitral award itself is not reviewable by petrev/certiorari, because arbitral tribunals are neither judicial nor quasi-judicial bodies
created by law. They are created by agreement of private persons.
- However, decision of RTC confirming, vacating, setting aside, modifying, or correcting a domestic or international arbitral award may be
appealed to the Court of Appeals.
- The losing party who appeals from the judgment of the court recognizing and enforcing an arbitral award shall be required by the appellate court to post a
counter-bond executed in favor of the prevailing party equal to the amount of the award in accordance with the rules to be promulgated by the Supreme
Court.

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JUDICIAL INTERVENTION: WHEN MAY BE SOUGHT

a. in the determination of the validity and enforceability of the arbitration agreement and its provisions by the Arbitral Tribunal;

b. in the determination of whether a particular dispute comes within the ambit of the arbitration agreement by the Arbitral Tribunal;

c. in a petition to compel arbitration;

d. interim remedies to conserve the subject matter of arbitration pending appointment of the arbitrators;

e. petition to quash or vacate the award;

f. confirmation and enforcement of the award;

g. in the appointment or challenge of an arbitration in the event default of the Appointing Authority; and

h. appeals from a judgment of the court.

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